How to Minimize Risks When Outsourcing Design to a Philippine Company

Minimize Risks When Outsourcing
by Eve Sastre | June 19, 2014 | No Comments

Design outsourcing is a trend that isn’t going to go away soon, and with good reason. For many businesses (big, small and in between) it’s simply the best way to reduce overhead, improve efficiency, and call a halt to narrowing profit margins.

As an outsourcing company ourselves, our goal is to help other digital agencies, not compete with them. Maybe this is something you want to try and see if it’s going to be the solution that can make your company grow this year?

Managing Risks in Outsourcing

Because outsourcing involves handing over a business process to another company, some business owners can understandably be hesitant to take the plunge. The benefits of outsourcing are too convincing to ignore, however. To help you make the decision, you should focus on the steps you can take to help minimize risk. Here are a few tips:

  • Define your company’s short-term and long-term goals. This will make it easier for you to decide what process (such as digital production) you want to outsource, what service delivery model to go for and what project timescales to set.
  • Research. Get to know your prospective vendors well, find out if they really do have the know-how and experience you need, if they’re in good financial shape, what their other clients are saying, and so on.
  • Establish a clear set of expectations and work from there. Make sure you and your vendor are on the same page on everything from delivery times to costs and process documentation. If you’re outsourcing a complex process, develop a solid transition plan and discuss this with the company you’re partnering with.
  • Hold regular performance reviews and keep the lines of communication open and active. You’ll want to build a great relationship with your vendor and learn what you can from them as well.

Why Foreign Companies Choose Filipino Talent Over Others

The Philippines is a leading outsourcing destination for well over a decade and the IT-BPO industry here continues to enjoy steady growth. Recently, 5 Philippine cities were named in Tholons’ “2013 Top 100 Outsourcing Destinations Rankings,” with Manila nabbing the #3 spot and Cebu City ranking 8th. So why do they choose to come here? 

  • Filipino employees work hard. Not only are they talented but you get maximum ROI when you partner with a reliable designer or developer who won’t leave you hanging when it comes to producing quality output.
  • Affordable rates and office space rent. In general, salaries and rent in the Philippines are lower compared to other countries in the region (Southeast Asia). But this doesn’t mean you can’t reward the stellar work that your Filipino team will surely give you!
  • Smart and dynamic talent. It’s super easy working with Filipino professionals and many expats and foreign nationals who work with them here can attest to this fact. The country has a high literacy rate as well as a youthful population and many opportunities for higher education. There’s no shortage of young, skilled workers here.
  • Easier communication. English is used in an everyday setting and is one of the country’s official languages. Having been a colony of Spain for over 300 years and of the United States for more than 50, the Philippines is very, very westernized in terms of culture.
  • Increasing political stability and a thriving economy. Fitch Ratings, Standard & Poor’s, and the Japan Credit Rating Agency Ltd. (JCRA) recently gave the country an investment grade rating.

Have you had any experience with outsourcing to a company? How does this compare to outsourcing to a freelancer? Tell us about your experience!

Eve Sastre

About the Author

Eve handles digital marketing for August 99 and heads a team of SEO specialists, researchers and copywriters.

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